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Technology Stocks : Intel Corporation (INTC)
INTC 40.03-1.3%3:59 PM EST

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To: Windsock who wrote (152112)12/11/2001 6:30:07 PM
From: Elmer  Read Replies (2) of 186894
 
There are many people that can give a good estimate for the Intel manufacturing cost for a particular processor -- and some of them even work at AMD.

You're right but in all fairness the selling price is the point of contention. Because AMD made the sour grapes statement that they weren't going to give their processors away, Droids assume Intel was willing to. Lost in the confusion is the fact that at a given price, what is a loss for AMD might be a profit for Intel. Surprisingly AMD seems happy to give their processors away now. Go figure... Also lost is the possibility that the price negotiated with AMD might not have been the same one negotiated with Intel. Secure capacity might demand a premium. MSFT may have decided that an unreliable source wasn't worth it regardless of the lower price. Pay a higher price and get a reliable supplier.

EP
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